Government urged to set up monetary policy body

ECONOMIST, Mr Eddie Cross, has urged Government to set up a professional monetary policy committee to advise the Reserve Bank of Zimbabwe (RBZ) and guard against financial leakages.

The Central Bank is haunted by allegations of corruption, which saw four senior managers being suspended recently.

Mr Cross said the country had noted with concern lack of supervision in the RBZ exchange control department. He said Zimbabwe can learn from South Africa, which has an independent monetary committee tasked with administering the central bank.

"Significant progress has been made so far in terms of addressing economic challenges and the new Minister of Finance (Professor Mthuli Ncube) has a full grasp of what is needed to stabilise the economy and put the country on a growth trajectory by 2019," said Mr Cross.

"He will address issues holistically especially in terms of restructuring the Reserve Bank of Zimbabwe and engagement of multi lateral agencies, which we hope will be successful. One of the minister's priorities should be to appoint a professional monetary policy committee with requisite skills to handle and administer monetary policy in the country."

Mr Cross said it was not disputed that the new dispensation inherited insurmountable financial problems that need all citizens' participation. He said the committee will help to administer activities of the RBZ and bring inflation under control as well as ensure liquidity.

"The President inherited a huge number of problems and is now trying to tackle them systematically but in the process he is encountering resistance from elements of the old regime and those who have been benefiting from the past," said Mr Cross.

He said the country's economic future looks bright and there is hope that the country will be back on its feet by March next year.

Mr Cross was speaking at the 4th Internal Control Congress for Africa held in Victoria Falls. Auditor General, Mrs Mildred Chiri, who was guest speaker at the conference, also offered her office's help to assist Government investigate financial leakages at the Central Bank.

The RBZ recently engaged auditors to investigate the activities of four senior executives accused of financial corruption. The Finance Minister recently formed a Finance and Economic Development Communication Taskforce headed by Mr Acie Lumumba but the committee was disbanded days later.

Internal control is there to ensure compliance with applicable laws and regulations and also with internal policies and keeping records so as to detect and prevent fraud and corruption among other vices.